Daley Vows Property-tax Cut In Next Year`s Budget

July 19, 1989|By James Strong and Katherine Seigenthaler.

Reacting to the outcry following the recent wave of tax bills hitting Chicago property owners, Mayor Richard Daley on Tuesday boasted that his administration has erased the city`s projected $122 million shortfall and vowed to cut $25 million from property taxes in the 1990 budget.

Daley, flanked by his top fiscal advisers, asserted that budget cutbacks, revenue collections and the income-tax windfall from the state legislature has wiped out the shortfall and, despite built-in costs for 1990, property owners will see some relief in their bills next year.

Daley blamed previous administrations and other government entities for increased spending, saying: ``Our residents are shocked by the sharp increase in property tax bills, increases that trace back to last year`s budget as well as hikes by other taxing bodies. As mayor, I have heard their complaints and, as mayor, I have an obligation to respond to them.``

Even more complaints were voiced Tuesday night by hundreds of irate Northwest Side residents who packed the basement auditorium of First Edison Park United Church of Christ.

Ald. Roman Pucinski (41st) told the crowd, many of whom were forced to stand in the pouring rain listening at the church`s windows because they could not get inside, that he ``appreciated Mayor Daley`s anouncement today of the $25 million property tax cut.``

The angry audience responded with boos and shouts of ``Peanuts!``

Pucinski blamed the state legislature for what residents say are outrageous property tax increases.

``The only solution is through the state legislature,`` Pucinski said.

``It is my intention to initate a resolution in the City Council to call upon the legislature to go into an emergency session to ease this tax burden.``

Based on the city`s 1988 tax levy of $622.8 million, the $25 million rollback in property taxes would amount to a 4 percent reduction. Daley and Budget Director Edward Bedore insisted the savings would be $25 on a home with a market value of $70,000.

When a reporter`s arithmetic showed only a $17 saving using Daley`s same figures on the $70,000 home, the mayor became flustered and chided: ``Maybe with your salary it`s small, but for most people in Chicago that`s a lot of money. It`s better than nothing.``

But many residents at Tuesday night`s meeting disagreed. ``Twenty-five dollars a year off of a $3,000 a year tax bill-so what,`` said Bob Sorensen, 54, a 41st Ward resident. Sorensen and his wife, Lee, 42, said their tax bill has gone up 125 percent in the last five years and $800 since last year.

Daley and Bedore insisted earlier at a City Hall news conference that there is a $1 decrease for every $1 million in property-tax cutbacks. In the past, the benchmark has been about 70 cents for every $1 million increase or decrease in property taxes.

Regardless of the disputed figures, homeowners were assured of no property tax increases and Bedore explained that the $25 million rollback will be made despite inflationary factors and an estimated $50 million more needed to meet wage increases mandated by multiyear contracts negotiated last year by the administration of Mayor Eugene Sawyer.

Daley disclosed that more jobs in City Hall will be eliminated shortly because the city will shift several functions to private contractors. He declined to outline the cutbacks but said they will be announced next week.

Ald. Timothy Evans (4th), who challenged Daley in the recent mayoral election, insisted that Daley should provide immediate tax relief and not wait until before the next election.

At his news conference, Daley insisted that the city`s portion of the overall tax bill amounts to 27 percent, and he issued an appeal that all taxing bodies ``follow my lead`` in cutting their budgets.

He scolded the Cook County Board for a 41.1 percent increase in property- tax levies between 1987 and 1988 and excessive spending by the Chicago Board of Education.

``I`m calling on the County Board to take a hard look at the assessment schedule,`` he said. ``Taxpayers are willing to pay their fair share of the cost of government, but hitting them with huge increases every four years creates an unnecessary hardship, especially on families on fixed incomes.

``It`s time tax bills reflect property values on a more regular basis.``

Reminded that County Board President George Dunne has warned of new property taxes of $100 million or more next year, Daley replied: ``That`s his problem. I`ve done my part. I hope they follow my lead.``